Dan Tehan (Wannon, Liberal Party, Minister for Social Services) Share this | Hansard source

I move:

That the amendments be agreed to.

This bill introduces a range of new measures designed to build a simpler, stronger and more sustainable welfare system. It will provide incentives and support for recipients to address barriers to finding and keeping a job. I thank all members and senators for their contribution on this comprehensive reform. From 20 March 2020, this bill will replace seven existing payments with one new jobseeker payment. Over 99 per cent of people will be no worse off under this change. Newstart allowance, sickness allowance, wife pension, bereavement allowance and widow B pension will cease from 20 March 2020.

Existing bereavement allowance recipients will continue to receive bereavement allowance for the remainder of their bereavement period following 20 March 2020. New applicants will receive bereavement support through the jobseeker payment. Widow allowance will close to new recipients from 1 July 2018 and close completely when all remaining recipients have transferred on to the age pension by 1 January 2022. Partner allowance will also close on 1 January 2022. The bill will also strengthen the employment focus for mature-age jobseekers while still recognising that volunteering can be a valuable stepping stone into paid work. Data shows that mature-aged people are 13 times more likely to find work when actively looking for it.

With the amendments, the bill will now ensure everyone who is eligible for bereavement support through the jobseeker payment or youth allowance other will be no worse off and some will be better off under the new arrangements. Following these amendments, intent-to-claim provisions will now apply to a person in vulnerable circumstances. Vulnerable claimants will include being homeless, affected by a major disaster or family and domestic violence, a recent humanitarian entrant, or recently released from prison or psychiatric confinement. For all other claimants the date of claim will be the date the claim is lodged rather than the date they initially contact the department.

The bill contains two measures to strengthen requirements for jobseekers who have substance abuse issues that may be preventing them from meeting their mutual obligation requirements. These measures better encourage and support these jobseekers to get treatment so that they can find work. From 1 July 2018 a new Job Seeker Compliance Framework will provide more support to those who are genuinely trying to meet their obligations while also introducing strong penalties for the small number of jobseekers who persistently and deliberately do not meet their mutual obligation requirements. The government has also agreed to introduce an additional demerit to the framework so that jobseekers would generally not face a lasting penalty until their sixth failure without good reason. This will mean that penalties are targeted only at those who are persistently and deliberately non-compliant.

Under the current framework 93 per cent of penalties for serious or persistent noncompliance are waived, and there is no consequence for the majority of jobseekers who repeatedly fail to meet their requirements or who refuse an offer of suitable work. There will still be discretion for providers and the Department of Human Services when it comes to deciding whether a jobseeker has a good reason for missing their requirements. It is critical to ensure that our welfare system remains strong and sustainable into the future. These reforms will help to do this. They are an important step towards creating a simpler system that is more work focused and more supportive of people who are receiving working age payments.

See this speech in context